Advances in Social Science, Education and Humanities Research, volume 491 Proceedings of the International Joint Conference on Arts and Humanities (IJCAH 2020)

The Implementation of the Cultural Exception Concept on the French Cinema Development and the Complexion of its Domestic Movie Theater Industry Annisa Lazuardi Rahma1,* Henny Saptatia Djajati Nugrahani1

1European Studies, School of Strategic and Global Studies, Universitas Indonesia, Jakarta 10430, Indonesia *Corresponding author. Email: [email protected]

ABSTRACT The French government is committed to providing a special treatment on cultural products by implementing the Cultural Exception on the French cultural policies relating to the cultural industry such as the French cinema industry and its domestic movie theater industry. In an effort to protect the French cinema industry as well as its domestic movie theater industry, the French government imposed a number of policies such as quota restrictions and tariff arrangements of import film, funding to support French cinema production, as well as strict regulatory processes in the development of the movie theater industry sector in level domestic by foreign investors. These policies have long been used to maintain the French cinema industry as well as its domestic movie theater industry sector in the face of Hollywood Film domination, competition of global cinema exhibition chain, new challenges in technology development and the dynamics of international policies within the EU level. The adoption of cultural exception concept in French cultural policy relating to the French cinema industry and its domestic movie theater industry sector is the French government's resistance form in order to defend its cultural identity. This study aims to know how the cultural exception concept applied to the French cultural policy and it gives an impact on the French cinema development as well as its domestic movie theater industry. In order to reach the objection, this study uses qualitative research design. The literature review has been chosen to obtain secondary data from books, journals, and also from government publications and documents. Furthermore, this study applies a political economy perspective to provide an overview of the French cultural policy related to its cultural industry. The application of the cultural exception concept adopted into the French cultural policy and imposed by the French government is able to make the development of the French cinema industry and its movie theater industry sector grow strongly at domestic level. For the sake of the economic factor in French cinema industry sector, the French government is more openly supporting the making of films adapted to the global market in order to compete with Hollywood films. On the other hand, there are homogeneity and monopoly in the French movie theater industry sector which is only controlled by local exhibitor or domestic companies.

Keywords: France, French cinema, Movie Theater Industry, Cultural Exception, Cultural Resistance

1. INTRODUCTION expressions that acknowledge the sovereign right of States to implement policies to support their cultural The cinema industry and the movie theater industry industries [1]. in France are not just a business commodity or a production of commercialized culture. The French The Cultural Exception idea itself was initiated by government is committed to giving a special treatment France in the General Agreement on Tariffs and Trade to cultural products. The special treatment is now known (GATT) in 1993. In this negotiation, France led the as the Cultural Exception. This concept aims to protect European Union in its pursuit of the cultural exception the culture from becoming a commodity. This concept is strategy during GATT and it has been a strong in line with the idea of the UNESCO Convention on the proponent of various audio-visual support measures protection and the promotion of the diversity of cultural implemented at the European level [2]. At the regional

Copyright © 2020 The Authors. Published by Atlantis Press SARL. This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 779 Advances in Social Science, Education and Humanities Research, volume 491

level, especially in France, the concept became identical 2. METHODS and aligned with the French cultural policies in an effort to protect, nurture and develop its cultural industry, for In order to reach the objection, this study uses the purpose of this study, it will be focused on the qualitative research design. The literature review has French cinema industry and its domestic movie theater been chosen to obtain secondary data from books, industry. The aim of this study is to know how the journals, and also from government publications and cultural exception concept applied to the French documents. Author wants to capture and explain an cultural policy and it gives an impact on the French outline of the phenomenon that fits the study focus cinema development and the complexion of its through literature review. Furthermore, this study domestic movie theater industry. applies a political economy perspective to provide an overview of the French cultural policy related to its France takes in a tense relationship with cultural industry. globalisation relating to its cultural identity and sees globalisation as a threat to cultural diversity. Held, McGrew, Goldblatt and Perraton describe that the 3. RESULTS AND DISCUSSION globalisation is indicated by the ‘stretching of social, In this section, we will discuss about the practice of political and economic activities across political the cultural exception concept on the French cultural frontiers’, driven by the enlargement of worldwide policy manifested in a series of regulations and systems and it affects on an increasing government interventions. The French government interconnectedness between nations [3]. France takes a role in funding, legislation and supervising considers it as a threat to its cultural identity. This idea measures on the French cinema industry as well as its encourages and shapes government action that leads to domestic movie theater industry. the continual modernising of policies to protect and promote its cultural industry. The cultural industry discussed in this study includes 3.1. Funding measures the French cinema industry and its domestic movie theater industry. The French cinema industry as a A cinema production or a substantial component of the audio-visual sector has a premium cinematographic industry needs both tax and budgetary position in economic sector and is one of the smallest of regulations. The French government showed only very France’s cultural industries [4]. It is also the one has the slight involvement in the film industry until the smallest share of their home market. So that makes foundation of the CNC (Centre national de la cinéma et sense for them to protect intensively in support of the de l’image animée) - a privileged instrument at national industry, which is viewed most fragile and where it is level - in 1946. The CNC is a central player in the most threatened in the face of Hollywood film French cultural policy for supporting the French cinema domination. industry and its domestic movie theater industry. The CNC makes a determining of large-scale cultural On the other hand, there is a strong state intervention policy, and creating the special characteristic of the in the domestic movie theater industry. In France, US current system. companies discovered business stretching complicated, not only because of its undeniable antipathy towards In accordance with the government publication Hollywood, but also because of the control and domination entitled Cultural Policies in France issued by The of the French movie theatre industry at level domestic The French Coalition for Cultural Diversity in collaboration cultural exception concept on the French cultural policy with the Ministry of Culture and Communication of has an impact on the complexion of movie theater France and The CNC states that the French cinema industry at domestic level. This sector becomes uniform industry has only a very minor share on the cultural or controlled by certain parties and their regulation budget, but the French government still takes control reinforce this condition. over it and it remains a privileged area. The State determines major orientations and stabilities while the This study aims to know how the cultural exception CNC organises the provisions and allocation of concept applied to the French cultural policy and it gives resources. The CNC takes roles, both as an instrument an impact on the French cinema development as well as of the public institutions and as a professional its domestic movie theatre industry. establishment. The intervention of the CNC is oriented on providing financial aid from Compte de soutien or automatic support that covers production aid, distribution support and exploitation with commercial

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and profit purpose. [1]. On the other hand, the CNC producers and makes their domestic marketplace is widely takes a part of the selective support to maintain an offer captive to Hollywood. when market conditions would not make possible [1]. The GATT or trade agreements between the Europe These aid systems lean entirely on a set of tax measures and United States are but an attempt series of the such as TSA (Taxe spéciale additionnelle), which is a American film business to attain advantageous trade and particular tax of every admission ticket [1]. The other expansion effort as well as export of its films to Europe. tax measures set are the tax on television broadcasters However, France, as the only European country still to that one-third going directly to the cinema and the posses a viable film industry, has robustly resisted because video/VOD tax that three-quarters is allotted to the of they want to maintain its film industry [6]. At France’s cinema [1]. demand, the agreements comprise a quota restriction on This government publication also informs that there the amount of films to be imported into France every year are also the tax incentives as a benefit from state from the United States [6]. The United States wanted support organised by limited companies, SOFICA unrestricted access to the screens, but France retained the (Société de financement du cinéma et de la télévision). quota to around 180-200 films a year [6]. France considers Gaining approval by the Ministry of Culture and that its subsidies agendas and quota limitation are Communication, SOFICA focuses its sole activity on reasonable because of the immense deal unfairly that cinematographic or audiovisual works funding. This tax already existing in the audiovisual sector. provision gives particularly procedures of a 20% tax Dubbing and subtitling was implemented progressively credit for a work whose shooting and post-production in the French market and it has been regulated on the expenses are made mostly in France [1]. Beside that, Decree No. 61-62 of January 18, 1961 establishing public there is also a supplementary tool of the financial administrative regulations for the implementation of support from the CNC called the IFCIC (Institut pour le articles 19 to 22 of the Code of the film industry governing Financement du Cinéma et des Industries Culturelles). the employment of French subtitles and dubbing on non- The IFCIC founded in 1983 by the Ministry of Culture French films which are screened in theaters throughout and this institution is intended to facilitate access to France [7]. French law gives also the strong protection of bank credit for cultural businesses, notably by authors’ rights. An original works of an authors has moral providing diverse guaranteeing loans based on the type rights and economic rights and it has been regulated by the of project and giving an expert appraisal of the specific Code de la Propriéte Intellectuelle [1]. The ethic rights risks in relation to this type of activity [1]. tied to the authors are unchangeable and inviolable, but the economic rights are transferable concerned exploitation of his work and the Code de la Propriéte Intellectuelle 3.2. Legislative measure furnish the provision of remuneration reception for each 3.2.1. Protection of the French cinema industry case of exploitation [1]. In addition, French regulation precludes any international handover of authors’ rights to There are two general strategies a country can enforce their forthcoming work [1]. to protect its cinema industry. First, by striking quotas to make sure that local films are not cast off the market by Hollywood movies and then, by granting subsidies to 3.2.2. Protection of the France’s domestic movie encourage the production of new films [5]. French has theater industry long engaged both methods to preserve its film industry in the middle of strong Hollywood film domination. France is France is the number one moviegoer country regarding willing to fight for its film industry by being the only true its contribution of the theatre admission fee in Europe. In rival to Hollywood. France attempts to infiltrate and France, US companies discovered business stretching dominate at all costs in order to compete with the complicated, not only because of its undeniable antipathy Hollywood movies domination. towards Hollywood, but also because of the control and domination of the French movie theatre industry at level Chaudhuri [6] tells that during the globalisation of the domestic by local exhibitor such as Les Cinémas Pathé 1990’s, Hollywood held Europe and makes Europe as its Gaumont, Le Circuit Georges Raymond (CGR Cinemas), most valuable export market. Attempting to extend its L’Union Générale Cinématographique (UGC) [8]. influence into the former communist country in Eastern Europe, where in that period happened the lifting of trade When AMC, American Movie Theater, projected its limitation that created unusual levels of competition from movie theater on the suburb of Toulouse in 1998 but it was US films. That is seen as a problem and threat to France, never built and triggered a petition organised by local Britain, Germany, Spain, and Italy as Europe main film exhibitor that made a campaign about the neocolonialism

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and warned the local citizens [8]. The second attempt of To accomplish the global promotion and expansion AMC to propose its movie theater in Dunkirk got trouble mission of its film industry, France, through the and rejection from the local press. They also have to Ministry of Culture and Communication, involves in respond resistances from domestic independent theater such many European cinema agenda like Eurimages and as Studio 43, a local exhibitor. It was resolved only after Euromed Cinemas. Eurimages program planned for the AMC accepted that the AMC could show only dubbed furtherance and growth relating to the European version while the independent theater would show popular cinematographic works while Euromed Cinemas non-French movie with subtitles [8]. program supports the diffusion and exportation relating to the European and Mediterranean Films including The complexion of the France’s domestic movie theater Algeria, Egypt, Morocco, Israel, Tunisia, etc [1]. industry becomes uniform. In terms of international business penetration, it had not differed. Kinepolis is still French government provides several policies to the only foreign exhibitor in the domestic market since support the French cinema industry and its domestic 2017 [8]. There is no presence of the international global movie theater industry by the strong state intervention. player in multiplex cinema chain such as the ODEON They take a role in funding, legislation and supervising Cinema Group, Cineworld in French Market [8]. In France, measures, particularly through the CNC (Centre the development of the domestic movie theater industry has national de la cinéma et de l’image animée) and a set of been constructed by a discourses series around tax regulations enables to acquire funds to promote its globalization, Americanization, presumption as an cinema industry. Furthermore, there is a dependable existential threat to the French domestic movie theater and system for funding production in support of the entire the French national culture and identity [8]. French cinema industry activities and its expansion and exportation. French law gives also a legislative On July 1996, French government passed the Raffarin framework which emphasizes the protection of the Act, which provided a two-level system of regulation French cinema industry and the French movie theatre implemented in cinema development in which new builds industry themselves. of 1500 seats or more and later it scaled down to 999 seats as well as expansion to existing cinemas of 2000 seats or Foreign companies are having difficulty expanding more would be probed by the CDACi (Commissions into the movie theater industry sector in France due to départementales d’aménagement cinématographique), a the strong development and growth of the France’s second national commission that was constituted to domestic movie theater industry and the tight regulations evaluate permits denied or awarded and could overrule the imposed by the French Government. Homogeneity and local commission and for the purpose of defending monopoly were created in the movie theater industry independent movie theaters in town and city centres [8]. sector in France, which was only controlled by local Law n ° 2014-626 of June 18, 2014 relating to Crafts, exhibitors (domestic companies). The French Commerce and Very Small Businesses (1), Code of government intervenes in the country's economy by Cinema and the Moving Image, Article no. 57 governing applying the concept of cultural exception. The motive the role and function of CDACi (Commissions is not only about economic growth, but also protection départementales d’aménagement cinématographique) [9]. and promotion of national interests, as determined by the administrative elite.

3.3. Supervising measure The political motive that shapes the French government action is a practice of cultural resistance. French government provides a support for export The cultural exception concept adopted in French given to French cinema that involves several instruments cultural policy relating to the French cinema industry such as the international aid program organised by the and its domestic movie theater industry sector is a form CNC which includes the aid for international exploration of the French government's resistance in order to as well as assistance for promotion and sale such as maintain its cultural identity from the domination of dubbing and subtitling in foreign language, reformatting, Hollywood films, competition of global multiplex conversion, design and dissemination of promotional cinema chain, new challenges in technology supports, etc [1]. The other organization entrusted by the development and the dynamics of global policies within CNC is UniFrance that promotes the French cinema the EU level. worldwide. Unifrance especially focused on global market surveys and supports films in international festivals and markets. [1].

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4. CONCLUSION June 3, 2020. [Online] Available: https://www.jstor.org/stable/10.3366/j.ctvxcrkcr The appilcation of the cultural exception concept adopted into French culture policy and imposed by the [7] Légifrance, Le Service public de la diffusion du French government is able to make development of the droit. (2020, September 3). Décret n°61-62 du 18 French cinema industry and its movie theatre industry janvier 1961 portant règlement d'administration sector grow strongly at domestic level. For the sake of publique pour l'application des articles 19 à 22 du the economic factor in French cinema industry sector, code de l'industrie cinématographique [Online]. the French government is more openly supporting the Available: making of films adapted to the global market in order to https://www.legifrance.gouv.fr/affichTexte.do?cid compete with Hollywood films. At the same time, the Texte=LEGITEXT000006070759 French government is still sustaining the production of [8] S. Hanson, “The Multiplex in Germany and films that particularly satisfy a cultural role for the elite France” in Screening the World: Global national and also international audience [10]. On the Development of the Multiplex Cinema. Leicester, other hand, there are homogeneity and monopoly in the UK: Palgrave Macmillan, 2019. pp. 199-214 French movie theatre industry sector which is only controlled by local exhibitor or domestic companies. [9] Légifrance, Le Service public de la diffusion du droit. (2014, June 19). LOI n° 2014-626 du 18 juin 2014 relative à l'artisanat, au commerce et aux très REFERENCES petites entreprises (1) [Online]. Available: https://www.legifrance.gouv.fr/affichTexte.do?cid [1] French Coalition for Cultural Diversity, “Cultural Texte=JORFTEXT000029101502&categorieLien Policies in France: Visual Arts, Cinema and =id Audiovisual, Books, Music, Performing Arts”, [10] M. Dannan, “From a ‘Prenational’ to a French Coalition for Cultural Diversity, France, ‘Postnational’ French Cinema”, Film History, Vol. Publication: December 2008. Accessed on June 8, No. 1, Cinema and Nation, pp. 72-84, Spring. 15, 2020. [Online]. Available: 1996 https://www.coalitionfrancaise.org

[2] P.M. Goff, Limits to Liberalization: Local Culture in a Global Marketplace. Ithaca, NY: Cornell University Press, 2011. [3] D. Held, A. McGrew, D. Goldblatt, and J. Perraton, What Is Globalization? Global Transformation, Cambridge: Polity Press, 1999. Accessed on June 25, 2020. [Online]. Available: https://www.polity.co.uk/global/whatisglobalizatio n.asp [4] A. Lombard, Politique culturelle internationale: Le modèle français face à la mondialisation. Paris: Babel Maison des cultures du monde, 2003. pp. 244 [5] S. Walkley, “French Film Policy: Principles and Practice” in Cultural Diversity in the French Film Industry: Defending the Cultural Exception in a Digital Age. London: Palgrave Macmillan, 2018. pp. 47-91 [6] S. Chaudhuri, "European Cinema." in Contemporary World Cinema: Europe, the Middle East, East Asia and South Asia, Edinburgh: Edinburgh University Press, 2005. Accessed on

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